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Welcome! Join the discussion about what skills, training and education New Zealand workers and businesses need now, and for the workplaces of the future.
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1 posts
Skills Shortage - Labour Shortage
30 April 2008 at 12:56pm
I think that often we talk about the former when what New Zealand is often experienes is the latter i.e. we are training many people with the skills needed for the NZ eceonomy but they depart overseas immediately after training because NZ is a low wage economy competing in a world-wide skill shortage. Unless this basic issue is addressed i.e. low wage rates compared with for example Australia, all the results of any new in ititaives will continue to disappear overseas.
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1 posts
Re: Skills Shortage - Labour Shortage
30 April 2008 at 1:13pm
Yes, we are training people but not enough to meet New Zealand's demand, and with an aging workforce we do not have enough skilled people in the workforce to train the coming generation of trades people. Which means we do need to continue the emphasis on upskilling the existing people in the workforce, regardless of age, so that we build up the number of people able to train our future apprentices. We also need to attract a better calibre of young person into trades, and get better recognition of trades as a viable career path.
I agree the wage rate is an issue. With the minimum wage rate now $12.00 an hour for a 16 year old labourer with no skills, an apprentice needs to be earning the equivient. I am involved in group training apprentices and we set ourselves the goal of paying apprentices a minimum equilivent of $12.00 per hour, which includes cash and fees paid in full up front, to first year apprentices who have either successfully completed a relevant pre apprenticeship course or have some relevant work experience. -
2 posts
Re: Skills Shortage - Labour Shortage
30 April 2008 at 2:50pm
Am I writing from the immigrant perspective as I have counseled immigrants for some 2 decades. Legally discrimination is a crime, but it is well-honoured in many workplace sectors. This reveals itself on many levels - well-qualified immigrants that find it difficult to find employment, immigrants being paid minimal salaries or being discriminated against on various levels - personal and public outcries against them, lack of promotion, etc.
Some reasons given are semi-legit., but often used to rationalise: "No or little Kiwi experience, foreign accent, cultural clash, etc.
It is understandable that in certain professions as in health or law, an immigrant cannot immediately be taken into full employ, but there are few "halfway stations". We could employ persons with foreign training in a "apprenticeship" until certain examinations and requirements have been completed. We could be more "immigrant friendly" on all levels from the Immigration Dept to the factory floor.
I have personally dealt with medical folk that have been used usefully in more than one other country, but arrive here to be unemployed. I have dealt with 2 highly qualified university lecturers who stayed unemployed for 3 years and then left for Oz. The "friendly rationale" was repeated many times: "Yes, you have great qualifications, but maybe you should add ...." After many "additions" they left the country.
Part of this situation is the "closed shop" attitude of more than one profession, that make it difficult for outsiders and even when these are allowed have them placed in less advantageous situations. The head of a government trauma unit who had been an associate lecturer overseas left for Oz after 5 years because he was not allowed to practice elsewhere, but he was received in Oz with flying colours!!
More than one Asian has thought themselves qualified for PR but the officials applied different measuring instruments to disqualify them not understanding the actual employment situation and even questioning one of his religious situation!
The present writer found his way by forgetting about his umpteen foreign degrees and diplomas plus foreign doctoral studies and doing level 3 to 5 NZQA courses to satisfy officials!
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1 posts
Re: Skills Shortage - Labour Shortage
30 April 2008 at 4:28pm
David and Glenis, you hit the nail on the head with the low wage economy. I would like to add an additional perspective and what I believe should be done re the 'skills shortage - labour-shortage'. I believe 'skills shortage- labour shortage' is a relative concept. This is my experience:
I have worked as a professional in the Tertiary Sector for the past 8 years. I have seen numerous restructures on an annual basis, across the sector - professionals at the coal face, are made redundant in their droves – and this is still happening today. Include the Science and Technology Sector, Health Sector, electricity sector (where people were made redundant as employees and made ‘contractors’, at huge financial loss) to get the full picture. Often these people are trained at huge cost to NZ – their ‘redundancies’ add more to the cost while training of new people pushes cost even higher – and not only the financial cost. The redundant professionals are often situated in areas of NZ where it is not easy to find a replacement; neither will others work for the salary that the ‘redundant’ staff worked for. With the advent of Broad Band and Internet, well qualified people no longer have to bow down to the pressures of redundancy- they simply leave the shores of NZ and go across the Tasman or elsewhere – where their skills are appreciated and they are gladly welcomed with open arms – they no longer have to feel ‘redundant’.
In my view, in addition to David and Glenis comments, I believe:
1. research into the financial benefits of continuous restructure, redundancies and knowledge gaps that is left by these experienced professionals should be conducted
2. research the cost of retraining and damage done when experienced people leave
3. Bring back succession planning. At the coal face there is no or very little prospect of ‘moving up’ as succession planning is either very poor or does not exist at all. Succession planning will allow us to remain competitive and cut down the horrendous costs involved with continuous restructure.
4. Turn the organizational pyramid on its head and ensure that we reward and recognize our skilled staff accordingly – money does matter and does motivate – if you think it does not, lets try a little experience: Let all government ministers, company directors and CEO’s take a salary and benefit sabbatical for a year, in other words, pay them nothing (including fringe benefits) for a year.
5. Get rid of inefficiencies and bring in flat management structures across NZ – this will free up more skilled people to work at the coal face and may even bring our productivity in line with that of the OECD average!
At a time when we have an aging work force and hemorrhaging of skills and talent elsewhere leaving our labour force very fragile and Unions with their hands tied, we should invest in our skilled people, reward them accordingly, manage our knowledge base appropriately, give skilled people a say in their future, do succession planning, get rid of inefficiencies and allow NZ and its skilled work force to face the future, with confidence!Last edited: 30 April 2008 at 4:33pm
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1 posts
Re: Skills Shortage - Labour Shortage
30 April 2008 at 7:44pm
I would add to Cecile's list to reduce income tax (and tax generally). This efficiently moves towards a higher financial remuneration economy. It's not just a movement to a higher wage economy here as wages are a narrow remuneration perspective, even financially, and have some efficiency and responsibility disadvantages in sectors where they can be avoided in favour of co-operative or share holding arrangements for instance or straight contracting.
Addressing the fundamental taxation structure would have helped skill retention. Not just Mr Cullen's forced and reluctant sop either, regardless of its size, but a consistent move to put economic power back into the hands of the people through reform of the taxation structure.
ON a more specifically skils front, one of the training organisations I work with trains in a highly specialist area where there are global shortages. That frustrates the NZ situation but our flexibility is limited. We can't easily move to meet demand because of the centralised approvals process and volumes and fees caps. When the demand cools (as it did 5 or 6 years ago) we can't readily move to reposition training into higher demand related areas because of the centralised approvals process (as well as business factors which are more maleable to us). The temptation is to artificially argue demand up & wait for the cyclical shift. Where is the high trust element of these latest High accountability, High Trust "reforms" then. Investment Plans won't help that - though they may give more efficient administration of the relationships involved. Thus flexibility in training to meet shortages is hindered by centralised systems.
Markets are not efficient drivers of supply and demand, but they are a hell of a lot better than government bureaucracies and the ministers that direct them. -
1 posts
Re: Skills Shortage - Labour Shortage
1 May 2008 at 11:53am
As an employee in an Educational Institution trying to assist High School Students in accessing a potential Trades Apprenticeship, the feedback from Industry Employers is that there needs to be some Government incentives for employers to take on apprentices as this is usually at a cost in terms of time and money. The current economic climate is such, that at present several Industry Employers are downsizing, and others are on the brink of going into recievership if they haven't already. Feedback also indicates that many Apprentices once qualified, either leave the country for better wages or go off on their own. Who wouldn't when we looks at their earning potential in other countries. Student feedback also supports this as the main reason they have undertaken trying to gain an Apprenticeship is to ensure a degree of financial security in their future.
Last edited: 1 May 2008 at 12:17pm
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1 posts
Re: Skills Shortage - Labour Shortage
6 June 2008 at 2:58pm
I agree with H Robertson's comment in regards to GOVT INCENTIVE...businesses may not be able to train or upskill - as it all comes back to TIME AND FINANCE issues. This is a nationwide problem - therefore Goverment must come up with incentives for businesses to train and upskill: incentives maybe in the form of less tax deductions ??? (its an idea) for companies that are serious about training to upskill.
Another strategy could be the govt funding a scheme that encourages businesses to allow for people to have work experience (especially those finding it hard to come back to the workforce - due to many years looking after family??) - this scheme could aid - school leavers, the mature workforce, students (to name a few). Govt could would need to come up with incentives - in the longrun - we all know we learn better practically - and most of our employment skills are learnt via the workplace and also, not all people are made for school, books - others learn practically and enjoy and respond better to a more hands-on approach.
Looking forward to hearing more strategies that will benefit the nation as a whole.
A question to the forum/website host: I only heard of these submissions via friends (after my regions meeting date) who saw a little boxed-corner advert in the paper about the regional meetings - why was there not more advertising to attract more people to attend??(yes, my friends attended the meetings) In this case I don't believe people are ignorant of the actual scheme, but its more about 'what scheme?' Is there any chance of having more meetings - maybe pushing the date back?? Couldn't emphasize more that this is a national problem - so why is it rushed? Well, thats just what I think - a little bit more public advertising would've been great - as the government have access to all types and forms of media to help get this message across.
thnx for the blog page anyway - good idea - hope you have all submitted your solutions :)
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